Why NYSE:SHOP Is a Promising High-Growth Stock in the Midst of Consolidation.

Exploring Growth Potential: SHOPIFY INC - CLASS A (NYSE:SHOP) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and SHOPIFY INC - CLASS A has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected SHOPIFY INC - CLASS A on our screen for growth with base formation, suggesting it merits a closer look.

What does the Growth looks like for NYSE:SHOP

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:SHOP has achieved a 9 out of 10:

• SHOP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 420.00%, which is quite impressive.
• SHOP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 82.56% yearly.
• SHOP shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.18%.
• The Revenue has been growing by 45.76% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, SHOP will show a very strong growth in Earnings Per Share. The EPS will grow by 23.79% on average per year.
• Based on estimates for the next years, SHOP will show a very strong growth in Revenue. The Revenue will grow by 20.41% on average per year.

Health Analysis for NYSE:SHOP

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:SHOP was assigned a score of 8 for health:

• SHOP has an Altman-Z score of 27.87. This indicates that SHOP is financially healthy and has little risk of bankruptcy at the moment.
• SHOP's Altman-Z score of 27.87 is amongst the best of the industry. SHOP outperforms 98.80% of its industry peers.
• The Debt to FCF ratio of SHOP is 0.71, which is an excellent value as it means it would take SHOP, only 0.71 years of fcf income to pay off all of its debts.
• SHOP has a better Debt to FCF ratio (0.71) than 80.72% of its industry peers.
• SHOP has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
• SHOP has a better Debt to Equity ratio (0.10) than 69.88% of its industry peers.
• SHOP has a Current Ratio of 7.32. This indicates that SHOP is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Current ratio value of 7.32, SHOP belongs to the best of the industry, outperforming 98.80% of the companies in the same industry.
• A Quick Ratio of 7.32 indicates that SHOP has no problem at all paying its short term obligations.
• The Quick ratio of SHOP (7.32) is better than 100.00% of its industry peers.

Profitability Insights: NYSE:SHOP

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:SHOP, the assigned 5 is a significant indicator of profitability:

• SHOP has a Return On Assets of 11.23%. This is amongst the best in the industry. SHOP outperforms 89.16% of its industry peers.
• SHOP has a Return On Equity of 13.89%. This is in the better half of the industry: SHOP outperforms 75.90% of its industry peers.
• SHOP has a Return On Invested Capital of 5.60%. This is in the better half of the industry: SHOP outperforms 63.86% of its industry peers.
• SHOP's Profit Margin of 16.41% is amongst the best of the industry. SHOP outperforms 95.18% of its industry peers.
• SHOP has a Operating Margin of 10.59%. This is in the better half of the industry: SHOP outperforms 69.88% of its industry peers.
• With a decent Gross Margin value of 51.07%, SHOP is doing good in the industry, outperforming 72.29% of the companies in the same industry.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:SHOP scores a 7 out of 10:

Besides having an excellent technical rating, SHOP also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. We notice that large players showed an interest for SHOP in the last couple of days, which is a good sign.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of SHOP contains the most current fundamental analsysis.

Our latest full technical report of SHOP contains the most current technical analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.